Ten men, all from Brazil and Paraguay, are set to be deported after they were arrested in the raid.

Investigators found a huge stash of processed and raw tobacco, cigarettes and packaging materials and paperwork when they raided the industrial operation in a lock-up on the outskirts of the city centre.

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Stuart Taylor, Assistant Director, Fraud Investigation Service, HMRC, said: “Tobacco fraud costs the UK £2.4 billion a year in lost tax, money that should be funding vital public services in the UK.

“We continue to work with other enforcement agencies to reduce the availability of illicit tobacco. Don’t let criminals profit by undermining legitimate retailers.

Sajeela Naseer, Head of Trading Standards for Birmingham City Council , said: “This operation shows partnership working at its best.

The bootleg cigarettes on the production line.

“Together we’ve taken action on illicit tobacco fraud and this factory alone had the potential to deprive HM Treasury of millions of pounds. “Birmingham Trading Standards will continue its investigation in relation to the suspected counterfeit cigarettes found during the operation.”

The raid were carried out by HMRC officers, Birmingham City Council Trading Standards, Immigration Enforcement, the Government Agency Intelligence Network and West Midlands Police .

Ten men are now facing deportation.

A nearby home was also searched as part of the investigation.

Anyone with information about the smuggling or illegal sale of tobacco is urged to call HMRC’s hotline on 0800 59 5000.

More than 30 million cigarettes were produced by the factory every month.